M A R K E T B E AT SHENYANG Retail Q4 2019
YoY 12-Mo. Chg Forecast 4.89 Market Overview Stock (million sq m) Shenyang Quanyun Wanda Plaza launched with 133,000 sq m of new space in Q4, bringing Shenyang’s total prime retail stock up to 4.89 million sq m. The new supply contributed the overall vacancy rate edging up 0.3 percentage points q-o-q to 18.3% in Q4, while ¥301 average retail rent dropped by 1.3% q-o-q to RMB301 per sq m per month. Rent (PSM/MO) Within the market, F&B and “Designed in China” brands actively expanded in Q4. Examples include the repositioned Li-Ning brand entering the Wanda Plaza in Taiyuan Street submarket, and outdoor wear jacket brand Bosideng moving into the Longdream in Zhongjie 18.3% submarket. Vacancy Rate
Source: Cushman & Wakefield Research Outlook
SHENYANG ECONOMIC INDICATORS By the end of 2020 Shenyang’s prime retail market is projected to welcome 346,000 sq m of new retail supply, pushing the city’s overall Q3 2019 stock beyond 5.2 million sq m. We can expect to see average rents continue to decline in the face of the new supply and renewal projects. YoY 12-Mo. Chg Forecast With the growing supply of community shopping centers, regional submarkets focusing on serving the surrounding residents are 4.2% emerging, and the proportion of service and catering sectors in these areas is expected to continue to rise. GDP Growth 11.0% Total Retail Sales of RENT / VACANCY RATE RETAIL SUPPLY PIPELINE BY SUBMARKET Consumer Goods Growth 320 20 100 315 18 80 310
305 16 m) 60
1.7% sq 300 40 CPI Growth 295 14
20 RMB/sqm/mo
290 (‘0000 12 285 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F2021F2022F -2.4% 280 10 Per Capita Disposable 2015 2016 2017 2018 2019 North Station-City Square Golden Avenue-Wulihe Taiyuan Street Income of Urban Rent Vacancy Rate (%) Tiexi Zhongjie Others Residents Hunnan-Aoti
Source: Shenyang Statistics Bureau / Cushman & Wakefield Source: Cushman & Wakefield Research Source: Cushman & Wakefield Research Research M A R K E T B E AT SHENYANG Retail Q4 2019
MARKET STATISTICS UNDER CNSTR TILL 2022 ASKING RENTAL RANGE SUBMARKET INVENTORY (SQM) VACANT (SQM) VACANCY RATE (SQM) (RMB/SQM/MO)* North Station-City Square 546,300 122,397 22.4% 177,000 175-630 Golden Avenue-Wulihe 904,547 114,864 12.7% 552,000 260-650 Taiyuan Street 233,504 50,700 21.7% 197,000 170-335 Tiexi 1,041,600 92,412 8.9% - 185-340 Zhongjie 1,377,300 395,628 28.7% 115,000 188-425 Hunnan-Aoti 376,000 38,880 10.3% - 145-300 Others 413,000 78,260 18.9% 477,000 115-255 SHENYANG TOTALS 4,892,251 893,141 18.3% 1,518,000 301
*Data includes shopping malls only. *Asking Rental Range (RMB/sq m/mo) is based on ground floor rent in prime locations in major shopping centers, excluding management, promotional and other fees.
SIGNIFICANT STORE OPENINGS Q4 2019 PROPERTY SUBMARKET TENANT SECTOR Garden City Hunnan-Aoti Luckin Coffee F&B Wanda Plaza Taiyuan Street LI NING Sportswear Sabrina Wei Longdream Zhongjie BOSIDENG Costume Senior Associate Director Head of North China Research The MIXC Golden Avenue-Wulihe NARS Beauty 14/F, North Tower, Beijing Kerry Centre, 1 Guanghua Road, Beijing 100020, China SIGNIFICANT PROJECTS UNDER CONSTRUCTION Tel: +86 10 8519 8087 / [email protected] PROPERTY SUBMARKET EXPECTED OPENING DATE SQM Baoneng Global Shopping Mall Golden Avenue-Wulihe 2020 176,000 cushmanwakefield.com Center Plaza Zhongjie 2020 60,000 The Mixc (Changbai) Others 2020 110,000 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Wuyue Plaza Others 2021 112,000 Cushman & Wakefield (NYSE: CWK) is a leading global The King Shopping Mall Golden Avenue-Wulihe 2021 316,000 real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is Friendship Times Square Golden Avenue-Wulihe 2021 20,000 among the largest real estate services firms with Orchard Times Square Golden Avenue-Wulihe 2021 40,000 approximately 51,000 employees in 400 offices and 70 OneWorld Taiyuan Street 2021 150,000 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project Hongyun Center Taiyuan Street 2021 47,000 management, leasing, capital markets, valuation and other Lottle World North Station-City Square 2022 177,000 services. Taihelongting Others 2022 35,000 ©2020 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed The Mixc (Huanggu) Others 2022 87,000 to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Joy City E Zhongjie 2022 55,000